BILL NUMBER: AB 2463	CHAPTERED  09/29/00

	CHAPTER   904
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE ASSEMBLY   AUGUST 25, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   JUNE 12, 2000

INTRODUCED BY   Assembly Member Wiggins

                        FEBRUARY 24, 2000

   An act to amend Section 22810 of, and to add Section 22821.1 to,
the Government Code, relating to retirement, and making an
appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2463, Wiggins.   Retirement:  retiree health benefits.
   Existing law, the Public Employees' Medical and Hospital Care Act,
provides that an annuitant, as defined, who meets specified criteria
and who was enrolled in a specified health benefits plan at the time
of becoming an annuitant, may continue his or her enrollment in that
health benefits plan without discrimination as to premium rates or
benefit coverage.  Under the act, if the governing board of a
contracting agency so elects, eligible family members of a deceased
employee of a contracting agency who are enrolled on the date of the
employee's death may continue their enrollment in a health benefits
plan, and the contracting agency is required to make specified
premium payments with respect to them.  Contributions and premiums
paid under the act are deposited in the Public Employees' Health Care
Fund, a continuously appropriated special fund.
   This bill would permit an eligible annuitant who was not so
enrolled, and specified survivors of annuitants who were not so
enrolled, to enroll within 60 days of retirement or death of the
annuitant, respectively, or during any future open enrollment period,
without discrimination as to premium rates or benefit coverage, as
specified.  The bill would authorize contracting agencies to elect to
allow eligible family members of a deceased employee of the
contracting agency, who were not enrolled on the date of death, to
enroll following the employee's death, as specified.  By expanding
the eligibility for benefits under the act, the bill would increase
contributions to a continuously appropriated special fund, thereby
making an appropriation.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 22810 of the Government Code is amended to
read:
   22810.  An employee or annuitant may, under eligibility rules as
the board may by regulation prescribe, enroll in an approved health
benefits plan, either as an individual or for self and family, except
that an employee of a contracting agency, or an annuitant who
retired while an employee or is the beneficiary of an employee, may
enroll only in a health benefits plan for which the board has
contracted.  With respect to state officers and employees, the
regulations shall provide that every employee or annuitant enrolled
in a health benefits plan shall be enrolled in a major medical plan
or shall provide for inclusion of major medical benefits in health
benefit plans.  The regulations may provide for the exclusion of
employees on the basis of the nature and type of their employment or
conditions pertaining thereto, but not limited to, short-term
appointments, seasonal or intermittent employment, and employment of
a like nature, but no employee or group of employees shall be
excluded solely on the basis of the hazardous nature of the
employment.  Any enrollment shall authorize the deduction of the
contributions required under this part from the employee's or
annuitant's salary or retirement allowance.
   Any annuitant who satisfies the requirement to retire within 120
days of separation as specified in subdivision (e) of Section 22754
may continue his or her enrollment, enroll within 60 days of
retirement, or enroll during any future open enrollment period, as
provided by regulations of the board, without discrimination as to
premium rates or benefit coverage.  If the survivor of an annuitant
who satisfied the requirement to retire within 120 days of separation
as specified in subdivision (e) of Section 22754 is also an
annuitant as defined in this part, he or she shall also be eligible
to enroll within 60 days of the annuitant's death or during any
future open enrollment period, as provided by regulation of the
board, without discrimination as to premium rates or benefit
coverage.  The effective date of enrollment of persons who, at the
time of becoming an annuitant or survivor, were not enrolled in a
health benefits plan under this part shall be a prospective date
determined by the board.
   Any permanent intermittent employee and any employee who works
less than full time may continue his or her enrollment while retired
from state employment if (1) he or she was enrolled prior to
separation from state employment and (2) he or she lost eligibility
prior to separation but continued his or her coverage under the
federal law.
   Any annuitant who becomes entitled to the survivor allowance under
Section 21571 at age 62 and who was enrolled in a health benefits
plan at the death of the member on whose account the survivor
allowance is payable may enroll in a health benefits plan without
discrimination as to premium rates or benefit coverage.
   In the case of the death of an employee after application has been
filed for coverage of family members but prior to the effective date
of coverage, family members shall be deemed to have been covered on
the date of the death of the employee, and if one of the family
members is an annuitant he or she shall be enrolled as if the
coverage applied for were continued without discrimination as to
premium rates or benefit coverage.
   The board shall, by rule and regulation, make whatever provisions
it deems necessary to eliminate or minimize the impact of adverse
selection which would affect any plans approved or contracted for,
because of enrollment of annuitants.
  SEC. 2.  Section 22821.1 is added to the Government Code, to read:

   22821.1.  All eligible family members of a deceased employee of a
contracting agency who are eligible for coverage hereunder on the
date of the employee's death shall be deemed to be annuitants under
subdivision (e) of Section 22754 for the purpose of enrollment,
pursuant to Section 22810, and continuing their enrollment hereunder.

   With respect to those eligible family members who enroll, a
contracting agency shall remit the amounts required under subdivision
(2) of Section 22826 and Section 22831 as well as the total amount
of premium required from employer and enrollees hereunder in
accordance with regulations of the board.  Enrollment of those
annuitants shall be continuous as of the effective date of their
enrollment specified in Section 22810 so long as they meet the
eligibility requirements of subdivision (f) of Section 22754 and
regulations pertinent thereto.  Failure to timely pay the required
premiums and costs shall terminate coverage without recourse to
reenrollment, and the cancellation of coverage by an annuitant will
be final without option to reenroll.  The contracting agency may
elect to require the family members to pay all or any part of the
employer premium for the enrollment.
   This section shall apply to a contracting agency only upon the
filing with the board of a resolution of its governing board electing
to be subject to this section.
